ACT Targets Rising Insurance Costs with Comprehensive Inquiry
ACT Targets Rising Insurance Costs with Comprehensive Inquiry
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Australian Capital Territory (ACT) is launching a thorough investigation into the escalating insurance costs that have been a cause for concern for businesses and community organizations.
This inquiry aims to shed light on the factors contributing to rising premiums and their broader impact.
Driven by the Legislative Assembly’s Standing Committee on Economics, Industry, and Recreation, the inquiry will explore several pivotal issues, including how insurance costs in the ACT measure against those in other regions, with a keen focus on workers' compensation and climate change impacts. "We are particularly interested in suggestions for improving the insurance sector to make it easier for small businesses and organisations to operate in the ACT," said committee chair Taimus Werner-Gibbings.
The investigation is set to delve into important topics like public liability claim trends, litigation behaviors influencing premium costs, and the challenges non-governmental and community projects face in accessing insurance coverage.
Part of the inquiry will also evaluate how insurance entities assess risks and consider public and private sector efforts in risk reduction. This is especially pertinent for community sports, recreation, and the creative arts when using government venues and facilities, as these requirements significantly affect their operations.
Additionally, the inquiry will examine models for offering public sector policies to community organizations, extending the scope to those that operate across state lines or on an international level.
According to the Canberra Business Chamber, there’s been a pressing need for action regarding insurance costs, which have been soaring to levels that many companies find unsustainable. "Increases in insurance premiums ultimately translate into price increases for customers and make it harder for businesses to operate sustainably," remarked CEO Greg Harford.
The chamber highlighted in its September-quarter Canberra Business Beat report that 44% of surveyed businesses experienced premium hikes exceeding 20% over two years, with these increases surpassing inflation rates.
Mr. Harford pointed out that although insurance costs are generally concerning, workers' compensation in the ACT stands out as particularly troublesome. "The chamber is hearing about huge price hikes for workers’ compensation insurance, and members report that it is substantially more expensive here in the ACT than in NSW or other jurisdictions," he added, noting the competitive disadvantage this creates for ACT-based businesses compared to those in other states.
Submissions for the inquiry are open until March 14, with the committee yet to announce when the findings will be reported.
The source of this information is from previous reports and statements, including insights from Greg Harford of the Canberra Business Chamber.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Recent transport and fleet industry coverage continues to point to a steady increase in electric and low-emission heavy vehicles across Australian logistics operations. For many operators, the attraction is clear: quieter vehicles, lower tailpipe emissions, potential fuel savings and stronger alignment with customer sustainability targets. But the insurance conversation is now becoming more detailed than simply replacing a diesel truck with an electric one. - read more
APRA’s latest quarterly general insurance statistics point to a market that is still under cost pressure, even as insurers continue to report stronger overall results than during the worst of the recent claims cycle. For Australian tradespeople, the headline is not simply whether insurers are profitable. The practical issue is how rising premiums, repair costs, reinsurance expenses and claims activity flow through to the price and availability of cover used every day on the tools. - read more
Australia’s financial advice reform agenda has taken another important step, with industry attention turning to how simpler, more accessible guidance could help consumers make better decisions about insurance. For workers who rely on income insurance or salary continuance cover, the issue is more practical than political: many people hold cover they do not fully understand until illness or injury forces them to test it. - read more
Recent transport and insurance industry attention on lithium-ion battery safety is a timely warning for Australian truck operators. The issue is no longer limited to consumer products catching fire in homes or warehouses. Batteries now move through freight networks in tools, scooters, e-bikes, electronics, spare parts and energy storage equipment, and that creates a different risk profile for carriers, depots and subcontracted linehaul work. - read more
Australia’s latest seasonal bushfire outlook is a practical reminder that fire risk is not confined to the height of summer. For many farms, the exposure begins well before a catastrophic fire day is declared, as grass growth, drying winds, stored fodder, machinery movement and access limitations combine to create a more complex risk profile than a standard rural home policy can address. - read more
Navigating the complex world of insurance can often feel daunting, but understanding the importance of life stage consideration when choosing life insurance is essential. As we journey through the various chapters of our lives, our financial responsibilities, dependents, and personal circumstances evolve. These changes invariably have significant implications for our insurance needs. - read more
Life insurance might not be at the forefront of your mind, especially when you're young and healthy. However, understanding the essence of life insurance early on can significantly impact your financial future and provide much-needed peace of mind. - read more
When it comes to financial planning, life insurance often takes a backseat. Many married couples in Australia overlook its importance, thinking that it's not immediately necessary or that they can simply put it off for later. However, life insurance should be regarded as a cornerstone of a solid financial strategy. - read more
Trauma insurance, also known as critical illness insurance, is a type of coverage that provides a lump sum payment in the event that the insured suffers from a critical illness or injury. Unlike health insurance, which covers medical expenses, trauma insurance is designed to provide financial protection by helping to cover the additional costs associated with recovery from a severe illness or injury. - read more
Life insurance is an essential financial protection that provides peace of mind to policyholders and their loved ones. The premiums you pay are determined by various factors, including age, health, lifestyle, and occupation. - read more
Knowledgebase
Whole Life Insurance: A type of life insurance that provides coverage for the insured's entire lifetime, with a savings component that builds cash value.
No comments yet. Be the first to share your thoughts.